Tern Plc Reports Mixed Results Amid Challenging Tech Investment Landscape
Why we think this is bad
The results paint a challenging picture for Tern Plc. While some portfolio companies show promise, the overall financial position has weakened. Net assets decreased from £12.3m to £10.7m, and the NAV per share dropped significantly from 3.2p to 2.0p. The material uncertainty regarding going concern is particularly worrying, as it hinges on successful fundraising or asset realisations. The challenging environment for early-stage tech funding adds another layer of risk. Despite these headwinds, there are some positives, such as slight cash balance improvement and progress in key portfolio companies. However, the negatives outweigh the positives, especially considering the company's dependence on external factors for continued operations.
Key Points
- Net assets decreased to £10.7m from £12.3m
- NAV per share fell to 2.0p from 3.2p
- Material uncertainty regarding going concern highlighted
- Challenging environment for early-stage technology funding
- Some portfolio companies (Device Authority, FundamentalVR, Talking Medicines) showed progress
- Wyld Networks faced financial difficulties
- Konektio investment written down to zero value
- Cash balance slightly improved to £0.4m from £0.3m
- Ongoing need for investment to support portfolio companies
Summary
Tern Plc, an investment company specializing in IoT technology businesses, released its annual results for 2024. Net assets decreased to £10.7m from £12.3m, and NAV per share fell to 2.0p from 3.2p. The company faces a challenging environment for early-stage technology funding, with material uncertainty regarding going concern. Despite these challenges, some portfolio companies showed progress: Device Authority secured additional funding and expanded its customer base, FundamentalVR launched new programs and received industry recognition, and Talking Medicines saw revenue growth. However, Wyld Networks faced financial difficulties, and Konektio entered administration. The company's cash balance slightly improved to £0.4m, but ongoing investment needs and market conditions pose significant challenges.